Netflix has increased its prices in Canada, from $1-2, effective immediately for new subscribers, reports The Canadian Press.
Here are the price increases below for new members:
- Basic plan (no HD, one screen streaming): $1 increase to $8.99 per month
- Standard plan (HD, two screens streaming): $1 increase to $10.99 per month
- Premium plan (4K, four screen streaming): $2 increase to $13.99 per month
This is the first price hike in Canada for the service in nearly two years and soon prices will also increase for current subscribers too, as they will find out in an email in the coming weeks.
Why did prices increase? In a statement, Netflix said the following:
“From time to time, Netflix plans and pricing are adjusted as we add more exclusive TV shows and movies, introduce new product features and improve the overall Netflix experience, to help members find something great to watch even faster,”
This year, Netflix plans to spend a staggering $6 billion to create original content for its viewers, adding 1,000 hours of original content. The company’s streaming content debt currently runs at $15.7 billion, which they set to pay off over several years. Ted Sarandos, Netflix’s chief content officer, said at its recent earnings call last month, 93% of Netflix shows are renewed, versus about 70% of programming on traditional network TV.
Netflix continues to spend heavily to acquire Canadian streaming rights to various TV shows and movies, facing competition from companies here like Bell Media, plus other streaming services like Amazon Video. CBS announced recently it plans to offer a streaming service for customers in Canada during the first half of 2018.
Earlier this week, Disney announced it would be removing all its shows from Netflix in 2019, to launch its own streaming service, with Marvel and Star Wars to possibly have their own standalone streaming services as well, further complicating choices for consumers.
But Canadians, don’t worry, because Netflix Canada confirmed to HuffPost Canada the loss of Disney content on Netflix is for the U.S. only, as international markets like Canada won’t be affected.
Despite the $1 or $2 jump, the service still offers value and many will continue to support Netflix, as it’s disrupting traditional television and Hollywood business models.
What do you think about this latest Netflix price increase?